The balance of payments is the domestic price of a foreign currency.
The exchange rate is the domestic price of a foreign currency.

Question

Quizplus · Accepted Answer

The balance of payments is a record of all economic transactions between residents of one country and the rest of the world over a specific time period. The exchange rate, on the other hand, is the price of one currency in terms of another currency. While both concepts are related to foreign currencies, they are not the same thing.

The Balance of Payments Is the Domestic Price of a Foreign